CONSTRUCTING HOUSING PRICE INDEX FOR TERRACED PROPERTIES IN JOHOR BAHRU, MALAYSIA

Housing is a country’s biggest asset. Hence, the pattern of the housing price index (HPI) is an important topic to gain insight into the housing market while identifying the prevailing housing issues. The determinants of housing price vary for each city and state based on the different characteristics in each location. Accordingly, HPI should consider the property’s quality differences. Besides, national HPI is insufficient and restricted to the housing price at the state level. Thus, the study focused on constructing a specified HPI model for different cities, districts, and states. Effective HPI can give parties a better idea of the current property market situation and act as an analytical tool in managing the sector. Specifically, the study aims to examine the relationship between the heterogeneity housing attributes and housing prices of the terraced properties in Johor Bahru, Malaysia. Additionally, the study provides detailed information on the key determinants of the housing price variation in Johor Bahru. Hedonic price analysis is useful in constructing HPI, expressing housing price as a function of vector property characteristics. Furthermore, HPI is constructed based on the yearly indices and by pooling the data into certain periods. The results show the percentage of variance explained by the factors of HPI for the terraced properties in Johor Bahru. Correspondingly, the underlying correlation between the tested housing attributes with the housing price is explained through the analysis results.

Monetary Policy and Housing Prices Dynamics in India

This study attempts to examine the relationship between monetary policy and housing prices in India. We use monthly data from January 2009 to December 2018 of four variables- Housing Price Index (HPI), Real Effective Exchange Rate (REER), Gross Domestic Price (GDP), and interest rate for our estimations using the Autoregressive Distributive Lag (ARDL) Model. The results from the study show that the impact of monetary policy on housing prices is significant only on lag three; however, the coefficient is very small. The results from the ARDL model are also supported by the variance decomposition of housing price. The variance decomposition of housing prices highlights that monetary policy explains around 13 percent of the variation in housing prices over a period of ten months. Further, the accumulated impulse response function reveals that with one-unit shock to interest rate results in a -0.000875 unit change in housing price. The study stipulates that, since conventional monetary policy has a modest impact on housing prices, therefore, it is insignificant for addressing the problems of real estate in India.

Booms and Busts in Housing Market and Health Outcomes for Older Americans

Background and Objectives The U.S. housing market has experienced considerable fluctuations over the last decades. This study aimed to investigate the impacts of housing price dynamics on physical health, mental health, and health-related behaviors for older American outright owners, mortgaged owners, and renters. Research Design and Methods We drew longitudinal data from the 1992-2016 Health and Retirement Study and merged it to the five-digit ZIP-code level Housing Price Index. The analytic sample comprised 34,182 persons and 174,759 person-year observations. We used a fixed-effects model to identify the health impacts of housing price dynamics separately for outright owners, mortgaged owners, and renters. Results A 100% increase in Housing Price Index was associated with a 2.81 and 3.50 percentage points (pp) increase in the probability of reporting excellent/very good/good health status for mortgage owners and renters, respectively. It was also related to a lower likelihood of obesity (1.82 pp) for outright owners, and a less chance of obesity (2.85 pp) and smoking (3.03 pp) for renters. All of these relationships were statistically significant (p<0.05). Renters also experienced significantly decreased depression scores (-0.24), measured by the Center for Epidemiologic Studies Depression Scale, associated with the same housing price changes. Discussion and Implications Housing price dynamics have significant health impacts, and renters are more sensitive to fluctuations in the housing market. Our study rules out the wealth effect as the mechanism through which changes in housing prices affect older adults’ health. Our findings may inform policies to promote older adults’ health by investing in local area amenities and improving socioeconomic conditions.

Housing Price Index, Wealth, and Protective Shield against Covid-19

This paper aims to fill two purposes: 1) we document that housing price index between different cities have inter-correlation. This means that when the housing price in one city goes up the other city follows. However, in the case of a big city and a small city, the housing price index of small city follows the path of housing price index in the small city. 2) The housing price index is a measure of wellbeing and wealth of residents. At the onset of a pandemic, wealthy and richer people have a wealth-protective shield against the disease. We show that this is the case in the US. We document that higher housing price indexes are associated with lower confirmed case of Covid-19 and lower risks of death due to the disease.

The Impact of Tourism, Game of Thrones and Income on Croatian Housing Prices

The Game of Thrones television program was widely seen throughout the world. The show acted as an advertisement for travel and home purchases in the Republic of Croatia. A hedonic least squares regression model adjusted for autocorrelation is used to consider the impact of the television show, tourist visits to the country and domestic personal income on the housing price index. The descriptive statistics and regression results suggest that the television show and tourism impact existing housing prices. Visitors to the country purchased or rented enough housing to cause demand to increase for residential properties which results in a higher housing price index. Per capita domestic income is not a significant factor influencing the housing price index for existing dwellings.

Residential Mortgage Loans Delinquencies Analysis and Risk Drivers Assessment

Residential mortgage loans play an important role in improving living conditions in developed countries. In Latvia, however, residential mortgage volumes have declined throughout the post-crisis year’s and were at the end of 2018 12% below the end 2008 level, while the house price index ca. 25% below pre-crisis level. The main reasons for this are banks credit losses, which resulted in a revision of credit granting standards and a deteriorating in their availability. On the other hand, households have experienced increased uncertainty, both as a result of financial difficulties, experienced during the crisis years and political instability in the post-crisis years. It is therefore essential to identify the true risk drivers and to analyse them. Based on existing researches in other countries, the author has identified several dozen macro-economic indicators, such as the unemployment rate, wage growth, housing price index, etc. and micro factors such as the age of the borrower, total debt to income, loan-to-value, etc., have developed univariate and multivariate econometric models and have examined their statistical stability. Consequently, through a consistent application, it is possible to take sound credit decisions, both in banks and by households, and to contribute to the sustainable development of the housing market.